Bitcoin price falls due to impending indictment and whale sale

Bitcoin (BTC) briefly surged above $30,000 on Tuesday night and analysts were immediately much more bullish. However, this was short-lived and Bitcoin was back up to $29,000 last night, even briefly falling to $28,900.

Since then, bitcoin has been consolidating again between $29,000 and $29,200, the same range as before the surge. At the time of writing, the BTC price is $29,026 on Binance and $26,576 on Bitvavo. With that, the bitcoin price is down 1.9% today. The total market cap is $564 billion and the dominance is 48.6%. The Fear & Greed Index is 52 (Neutral).

Macro: Fitch downgrades US credit rating, bearish on markets?

We covered this earlier this morning, but yesterday’s fluctuation in bitcoin price coincided with a US credit rating downgrade from AAA to AA+. Analysts warn this could spell a turnaround for risky financial markets.

It is currently questionable whether this also applies to Bitcoin, as the correlation between Bitcoin and other markets has recently decreased.

It is also questionable whether the macroeconomic developments below can cause any excitement given today’s low liquidity.

Will Crypto Exchange Binance Be Sued Again?

Although bitcoin already fell towards $29,000 yesterday, the price crashed particularly quickly in the latter part. This was most likely related to the semafor messages listed below.

The news site reports that the US Department of Justice is considering suing Binance for fraud, but is hesitant due to the potential impact on customers. More on that later on Crypto Insiders.

Bitcoin volatility is historically low

Meanwhile, Bitcoin and Ethereum (ETH) volatility is at its lowest level in years, analytics firm Kaiko reports.

Bitcoin’s volatility is now even lower than that of major traditional assets like the Nasdaq, S&P 500 and gold, reports analytics firm K33.

Bitcoin Whales Are Selling But A Big Drop Seems Unlikely

Lately we see whales, Large investors are becoming more active again. Whales have bought a whopping 27,755 BTC since mid-May, according to analytics firm Santiment. They now own 11.5 million BTC, or nearly 60% of the total supply.

However, analyst James van Straten reports that 15,000 BTC has been sent to exchanges in the past few days. According to the analyst, whales are the main sellers.

However, according to CryptoQuant founder Ki Young Ju, it’s unlikely that we’ll see a major airdrop by whales. There is not enough liquidity on the market to sell to private investors. The analyst expects the market to remain cloudy until we see a significant influx of new money or stablecoins.

BTC Analyst: Watch These Prices

Most, according to analyst Keith Alan bullish Scenario if Bitcoin stays above the 21-month moving average around $28,500. Then the price could retest $30,000 and potentially break the 100-week moving average at 31,750.

Read Also:  Is Following Bitcoin Whales a Waste of Time?

However, he is not confident that the 21-month MA will hold and thus expects a retest of the support at $25,000 and possibly above the $20,000 2017 high.

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